Channeladvisor Beats

Channeladvisor (ECOM) reported a 2nd Quarter June 2017 loss of $0.02 per share on revenue of $30.0 million. The consensus estimate was a loss of $0.10 per share on revenue of $28.7 million. The Earnings Whisper number was for a loss of $0.08 per share. Revenue grew 10.7% on a year-over-year basis.

The company said it expects third quarter revenue of $29.7 million to $30.1 million. The current consensus revenue estimate is $30.5 million for the quarter ending September 30, 2017. The company also said it continues to expect 2017 revenue of $123.0 million to $124.5 million. The current consensus estimate is revenue of $123.8 million for the year ending December 31, 2017.

ChannelAdvisor Corp is engaged in providing software-as-a-service solutions that enables retailers and manufacturers to integrate, manage and optimize their merchandise sales across hundreds of online channels.

ChannelAdvisor Announces Second Quarter 2017 Financial Results

•GAAP net loss of $(4.0) million

--Adjusted EBITDA of $1.1 million exceeds guidance

ChannelAdvisor
Corporation (ECOM), a leading provider of cloud-based e-commerce
solutions that enable retailers and branded manufacturers to increase
global sales, today announced its financial results for the quarter
ended June 30, 2017.

"Our second quarter results exceeded our guidance for both revenue and
adjusted EBITDA," said David Spitz, CEO of ChannelAdvisor. "I was
especially pleased to see our customers success translate into very
strong variable revenue growth, helping us to drive the fastest revenue
growth rate weve had in several quarters. Further, we continued to see
increasing average revenue per customer. This reflects our focus on
attracting large, high-quality customers as well as increasing revenue
from existing customers, as we share in the success they achieve from
our solutions. Demand for our technology continued to grow and drive our
momentum in the marketplace. As such, we remain optimistic that our
business momentum will produce improving revenue growth trends as we
look ahead and continue to focus on delivering profitable growth."

Second Quarter 2017 Financial Results

•
Total revenue of $30.0 million for the second quarter of 2017
increased 11 percent compared with total revenue of $27.1 million for
the second quarter of 2016.

•
GAAP net loss was $(4.0) million compared with GAAP net loss of $(6.7)
million in the second quarter of 2016. GAAP net loss per share was
$(0.15), based on 26.4 million weighted average shares outstanding,
compared with a GAAP net loss per share of $(0.26) in the year-ago
period, based on 25.5 million weighted average shares then outstanding.

•
Non-GAAP net loss, which excludes the impact of non-cash stock-based
compensation, was $(0.6) million for the second quarter of 2017
compared with $(2.8) million for the second quarter of 2016.

•
Adjusted EBITDA, a non-GAAP measure, was $1.1 million for the second
quarter of 2017 compared with $(0.9) million for the second quarter of
2016. Adjusted EBITDA excludes depreciation, amortization, income tax
expense (benefit), interest, and stock-based compensation expense.

•
Cash and cash equivalents at quarter-end totaled $57.9 million,
compared with $63.4 million at the end of the first quarter of 2017.

Recent Business Highlights

•
Average revenue per customer, calculated on a trailing twelve-month
basis, increased 11 percent to $41,029 for the twelve months ended
June 30, 2017, compared with $37,000 for the twelve months ended
June 30, 2016. Total customer count was 2,906 at the end of the second
quarter of 2017, compared with 2,878 customers at the end of the
second quarter of 2016. These metrics do not include approximately 50
net new customers acquired with our acquisition of HubLogix Commerce
Corp. during the second quarter of 2017.

•
Fixed subscription fees were 75 percent of total revenue and variable
subscription fees were 25 percent of total revenue for the second
quarter of 2017. This compares to 77 percent and 23 percent,
respectively, for the second quarter of 2016.

Average revenue per customer is revenue divided by the average
monthly number of customers during the period, which is calculated by
taking the sum of the number of customers at the end of each month in
the period and dividing by the number of months in the period.

Number of customers includes all customers who subscribe to at
least one of our solutions, but excludes customers acquired from our
acquisition of HubLogix and customers who subscribe only to certain
legacy product offerings that are no longer part of our strategic focus.

ChannelAdvisor believes that these non-GAAP measures of financial
results provide useful information to management and investors relating
to ChannelAdvisors financial condition and results of operations. The
companys management uses these non-GAAP measures to compare the
companys performance to that of prior periods for trend analyses, and
for budgeting and planning purposes. The company believes that the use
of these non-GAAP financial measures provides an additional tool for
investors to use in evaluating ongoing operating results and trends and
in comparing the companys financial measures with other software
companies, many of which present similar non-GAAP financial measures to
investors, and that it allows for greater transparency with respect to
key metrics used by management in its financial and operational
decision-making.

Management of the company does not consider these non-GAAP measures in
isolation or as an alternative to financial measures determined in
accordance with GAAP. The principal limitation of these non-GAAP
financial measures is that they exclude significant expenses that are
required by GAAP to be recorded in the companys financial statements.
In order to compensate for these limitations, management presents
non-GAAP financial measures together with GAAP results. Non-GAAP
measures should be considered in addition to results and guidance
prepared in accordance with GAAP, but should not be considered a
substitute for, or superior to, GAAP results. Reconciliation tables of
the most comparable GAAP financial measures to the non-GAAP financial
measures used in this press release are included with the financial
tables at the end of this release. ChannelAdvisor urges investors to
review the reconciliation and not to rely on any single financial
measure to evaluate the companys business. In addition, other
companies, including companies in our industry, may calculate similarly
named non-GAAP measures differently than we do, which limits their
usefulness in comparing our financial results with theirs.

About ChannelAdvisor

ChannelAdvisor (ECOM) is a leading e-commerce cloud platform whose
mission is to connect and optimize the worlds commerce. For nearly two
decades, ChannelAdvisor has helped retailers and branded manufacturers
worldwide improve their online performance by expanding sales channels,
connecting with consumers around the world, optimizing their operations
for peak performance and providing actionable analytics to improve
competitiveness. Thousands of customers depend on ChannelAdvisor to
securely power their sales and optimize fulfillment on channels such as
Amazon, eBay, Google, Facebook, Walmart and hundreds more. For more
information, visit channeladvisor.com.

Cautionary Language Concerning Forward-Looking Statements

This press release contains "forward-looking statements" within the
meaning of the "safe harbor" provisions of the Private Securities
Litigation Reform Act of 1995, including but not limited to, statements
regarding our financial outlook and guidance and expectations regarding
our growth and that of the e-commerce industry. These forward-looking
statements are made as of the date of this release and are based on
current expectations, estimates, forecasts and projections, as well as
the current beliefs and assumptions of management. Forward-looking
statements are subject to a number of risks and uncertainties, many of
which involve factors or circumstances that are beyond ChannelAdvisors
control. ChannelAdvisors actual results could differ materially from
those stated or implied in forward-looking statements due to a number of
factors, including but not limited to, risks detailed in
ChannelAdvisors Annual Report on Form 10-K for the year ended December
31, 2016 and its Quarterly Report on Form 10-Q that will be filed for
the quarter ended June 30, 2017, as well as other documents that may be
filed by the company from time to time with the Securities and Exchange
Commission. These documents are available on the SEC Filings section
of the Investor Relations page of our website at http://ir.channeladvisor.com.
In particular, the following factors, among others, could cause results
to differ materially from those expressed or implied by such
forward-looking statements: our reliance for a significant portion of
our revenue on sales by our customers on the Amazon and eBay
marketplaces and through advertisements on Google; our ability to
respond to rapid changes in channel technologies or requirements; our
ability to compete successfully against current and future competitors,
which could include the channels themselves; our reliance in part on a
pricing model under which a portion of the subscription fees we receive
from customers is variable, based upon the amount of transaction volume
that those customers process through our platform; our reliance on
non-redundant data centers and cloud computing providers to deliver our
SaaS solutions; the potential that the e-commerce market does not grow,
or grows more slowly than we expect, particularly on the channels that
our solutions support; challenges and risks associated with our
increasing international operations; and security or privacy breaches.
The forward-looking statements included in this press release represent
ChannelAdvisors views as of the date of this press release.
ChannelAdvisor undertakes no obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise. Accordingly, these forward-looking
statements should not be relied upon as representing ChannelAdvisors
views as of any date subsequent to the date of this press release.